A PREDICTIVE APPROACH TO MODEL SELECTION
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EDWARD GREENBERG; ROBERT P. PARKS
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Article
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1997
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John Wiley and Sons
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English
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We argue for the adoption of a predictive approach to model speciยฎcation. Speciยฎcally, we derive the dierence between means and the ratio of determinants of covariance matrices when a subset of explanatory variables is included or excluded from a regression. Results for an economic application are p